Bebee v. Pennsylvania Human Relations Commission
2012 Pa. Commw. LEXIS 316
| Pa. Commw. Ct. | 2012Background
- Petitioner refinanced a mortgage in March 2007 with First Franklin; loan later sold and assigned through LaSalle, Merrill Lynch, to Bank of America (BOA) by Feb 24, 2009, and reassigned to U.S. Bank by Apr 9, 2009.
- Foreclosure filed April 21, 2009 based on nonpayment; August 7, 2009 Petitioner filed a Commission complaint alleging discriminatory lending practices and race, sex, and age as factors.
- BOA failed to respond to the complaint; a Rule to Show Cause was issued Jan 14, 2010; BOA did not respond, and the Commission issued a finding of probable cause and judgment on liability on Mar 23, 2010.
- BOA moved Sept 21, 2011 to rescind the finding of probable cause and dismiss, arguing lack of connection to the loan, untimeliness, and res judicata from a 2009 class action settlement; motion argued no meritorious defense under § 42.33(c).
- Hearing examiner recommended dismissal due to lack of specific disparate treatment and timing/prevalence issues; Commission granted dismissal; Petitioner appealed, arguing improper rescission and timeliness defenses.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Commission could rescind the probable cause finding and liability judgment | Reversal requires petition to open a default; Kennedy factors apply | Under § 42.76, Commission may rescind anytime; discretion to rescind exists | Commission properly dismissed resulting from untimely action; rescission affirmed |
| Whether timeliness canbar the complaint post-judgment | Parks waiver should not bar § 9(j) timeliness defense; timeliness governs | § 9(j) allows dismissal for untimeliness with no equitable tolling grounds | Complaint time-barred; untimeliness affirmed |
| Whether the complaint plausibly alleged discrimination and could survive dismissal | Alleges race/sex/age-based discrimination in mortgage lending during origination | Discrimination claim tied to origination years before BOA’s involvement; not properly pleaded | No viable, timely, or properly pleaded disparate treatment; affirmed dismissal |
Key Cases Cited
- Kennedy v. Black, 492 Pa. 397 (1981) (default-opening standards for rescission require three factors)
- Parks v. Pennsylvania Human Relations Commission, 848 A.2d 204 (Pa.Cmwlth. 2004) (waiver of defenses from failure to respond; timeliness defenses discussed)
- Canteen Corp. v. Pennsylvania Human Relations Commission, 814 A.2d 805 (Pa.Cmwlth. 2003) (scope of judicial review; substantial evidence standard)
- U.S. Bank N.A. v. Mallory, 982 A.2d 986 (Pa.Super.2009) (default judgment opening standards)